UK Banking Industry Patiently Waiting For BoE’s Stress Test Results

To avoid a 2008-level financial crisis, the Bank of England conducts a yearly series of stress examinations on UK banks to gauge a bank’s capability to handle difficult global market situations similar to 2008’s financial crisis.

As the stress tests have finished, the banks wait on the possible results. These include:

  • Barclays
  • HSBC
  • Santander UK
  • Standard Chartered
  • Lloyds Banking Group
  • Royal Bank of Scotland
  • Nationwide Building Society

The exams will help the BoE understand the level when institutions need to ask investors for more cash or to help improve their financial capability further.

Dramatic China Slowdown And Eurozone Contradiction

The stress tests included having the banks face off with the reality of a dramatic Chinese slowdown and a huge Eurozone contradiction, which would challenge banks with a negative seven inflation for seven quarters and an interest rate of zero coming from the current 0.5 per cent.

In 2014, Lloyds passed the stress tests along with RBS. Co-op Bank failed. Co-op is unable to take the exams because it had scaled back its operations because of its involvement with different scandals.

According to Analysts at Berenberg, banks will not fall beyond the passing rate set by the BoE.

Analyst for investment group Jefferies Joseph Dickerson said:

“If the purpose of employing a countercyclical buffer is to push back on the financial cycle, we would argue that the loan market in the UK is far from a cyclical peak. Thus, gross mortgage originations are annualising 41% below their 2007 peak.”


Good and Bad The US Economy Comes Back Better

Analysts view new US economic information as pointing into higher consumer activity while decreasing exports. Anyone who understands the context may point out that consumers are consuming more local rather than international wares. But if this isn’t the case, it could mean big trouble for the country.

Weaker oil prices showcase a stronger US dollar. Lower oil prices mean better consumer response for businesses, which leads to overall greater local economy sales.

Export Downbeat

However, declining exports is a sign of a weakening global market demand. With China’s economy continuing to slump and Europe following an ethnocentric approach to business and products, US products have the Southeast Asian and Central Asian region with the highest imports. However, the demand is not as high as that of Europe and Japan.

Japan’s strengthening Yen is also weakening its exports. Its direct declining effect on the United States is also indicator of stronger local sales yet a weaker Japanese economy.

The US GDP is likely to grow by 2.6 per cent this year, which is a humungous growth since 2006. The projected steady increase of US consumer activity, coupled with resilient SME activities, should have the US back on track in the next few years.

Final Will Battle By Daughter Against Charities Sees A Win Of £164,000

Heather Ilott’s case involving her mother’s inheritance comes to a close as the Court of Appeal increases her share of inheritance after her mother left her entire estate to three animal charities. Melita Jackson, Heather’s mother, intended to cut her out of any inheritance as senior judges found that her mother had acted in an “unreasonable, capricious and harsh” way to her daughter.

Heather Ilott had lived in poverty for the longest time as her mother had never forgiven her for eloping with her boyfriend when she was only 17 years old. Jackson died at the age of 70 in 2004.

She had never met her father as Thomas Jackson was killed in an industrial accident in 1960. She is still partnered with her teenage boyfriend Nicholas.

She had left her daughter nothing. She left her £500,000 total estate to The Blue Cross, The Royal Society For The Protection Of Birds and The Royal Society For The Prevention of Cruelty To Animals

The court of appeal decided the sum of £50,000, awarded to Ilott through a county court decision, was insufficient. Judges warned that further litigation only meant the dissipating value of the estate.

This week, Ilott’s entitlement had increased by £164,000. She is appointed to buy her house association home and £20,000 would be left to supplement her benefits.


It’s Possible That The US Economy Wasn’t Having A Hard Time To Start With.

The American economy faced much trouble during the 2008 Financial Crisis with plenty of businesses closing down. In the previous year, the American economy had landed in a storm during the first quarter. Its economic growth from 2013 had come to a stop.

However, analysts point to a rebound.

According to PNC Financial Senior Macroeconomist Gus Faucher, growth is bouncing back after the US’ weak first quarter. The US economy is improving significantly with home building reports improving in April. The report showed that housing has surged by 20.2%, the biggest increase since 1991.

According to analysts, the numbers are evidence for the upcoming growth.

Consumers also contribute as orders of non-transportation durable goods had increased in April. Investors have become aggressive in different sectors.

A stronger jobs market is highly likely to improve consumer confidence and spending.

American investors are to a point questioning the data of the US government.

However, some economists believe that the rebound will help the US economy, but it wouldn’t be as strong as 2014’s.


Bank of England Warns That Greece Risks European Market Liquidity

China’s economic slowdown, Greece’s insolvency and other economic troubles worldwide increases the likelihood of market liquidity, warns the Bank of England.

The BoE’s Financial Policy Committee, post-meeting, released a statement:

“Any of these risks could trigger abrupt shifts in global risk appetite that in turn might lead to a sudden reappraisal of underlying vulnerabilities in highly indebted economies, or sharp adjustments in financial markets.”

The Financial Policy Committee observes the possible risks in the uk’s financial system. They recently mentioned that Britain’s credit growth is moderate. Despite such, the banks’ resilience to rebound has improved.

The FPC warns that the housing market risks may have been reduced, but homeowners have very high debts, which could pose a significant threat in the future.

They also warned about Greece and China’s economic situation. Greece’s financial standoff continues to delay its debts. It could trigger certain economic troubles for the United Kingdom. China’s economic slowdown also affects UK’s exports where the latter country is its biggest importer.

Bank of England Governor Mark Carney sent a letter to UK Finance Minister and BoE Chancellor George Osborne stating that the following year, the FPC must review the banks’ calibration process for capital buffers and carry out an annual assessment of financial stability risk and regulation.

Don’t Ever, Ever Snub Anyone in a Convention

You see, I’ve been working in different companies throughout my marketing executive years. I loved handling accounts. I loved making sure my clients got their needs addressed, and seeing that smile on their face helps me cope with the difficulty of the task I just finished.

But when I was still green to all of this, I was asked to attend a convention

This was for the farming’s industry niche. There were many cow and pig products. Boosters for plants and fertilizers that deliver great results (claimed by their packages) were everywhere.

Truthfully, the whole situation literally stank.

I took some time outside to breathe. I was approached by a man in a business suit. He began talking to me and told me if I was familiar with farming. I said no, and he told me how farming is the backbone of many industries, which I agreed to because farming produces food.

However, my client was calling. I had to cut the man short.

Conversing through the evening, I had my client sign my company’s offer and I began working for him.

But I regret leaving that man who talked to me outside the convention. He was featured once in a construction magazine. It turns out he was the biggest investor in a famous multinational company during that time.

So, don’t ever, ever snub anybody in a convention. When they told you God appears in different forms, you’d better believe it.

Mario Draghi Calls For Economic Union

European Central Bank Chief Mario Draghi had pushed members of the Euro bloc to have an economic union on rules regarding economic policies. He said that fears regarding the break-up of the bloc could continue until the EU provided continuous reforms to ensure that all countrys’ fiscal policies and reform efforts are in control.

However, many did not like the idea of wresting the decision-making process out of the hands of national governments.

Draghi said on Thursday that once the Eurozone had an “economic and fiscal union” the fears and doubts of investors would be swayed. He said that monetary unification was not enough because the strands of decision making interacts and strengthens two or three other nations.

Fiscal union required the EU to have new budget rules with stability and growth pact in mind. This is to ensure the national decisions do not affect the currency in other countries in the same area.

Draghi said “The importance of each country sticking to its commitments under the stability and growth pact should therefore be beyond debate,” he said. “Indeed, that a sound fiscal framework is necessary in a monetary union goes without saying. Whether it is sufficient to safeguard fiscal policy as a stabilisation tool, however, has been challenged by our experience during the crisis.”


China’s Economy About to Get Worse According to Experts.

The New Yorker Analyst John Cassidy speculates that China’s economic miracles are wearing off and it can be costly for Southeast Asia and the world.

China is the world’s second largest economy.  Any worsening could have repercussions in the region.


The Conference Board, an international economic research group funded by large corporations, revealed that the Chinese economy is struggling to keep up its 10% growth as it falls three to 7%.


An IMF report also highlighted that China’s GDP is only slightly larger than the United States.


Cassidy highlights that China policymakers need to step up and face two challenges; precipitating a property crash or a financial crisis. China’s economic growth will only grow if it comes forward with innovative products and services, increased productivity and better consumer spending.


Today, China is heavily reliant on credit growth, heavily contributing heavily to its existing debts. However, China’s Communist government helps it write off bad financial records.


To add to this, China’s economic trouble may worsen as its piece of  capitalist pie, Hong Kong, continues to protest against its rule.


Small Business Owners – How to Keep Looking Young

There is no denying that running a small business can sometimes be a stressful experience. When things go wrong there is often no-one to turn to but yourself, which can put an enormous amount of stress and strain on your shoulders.

It’s not uncommon to see small business owners “age” during times of stress, and this comes in the form of wrinkles and fine lines on the face.


Luckily, it doesn’t have to be this way. Below are some tips on how to keep looking young no matter what is happening in your business.

Drink lots of water

If you want your skin to stay hydrated, while at the same time maintaining its youthful glow, then drinking lots of water is essential. Experts recommend at least 8 glasses a day, although this should be more if you live in a hot country or you sweat a lot.

On the flip side, it’s a good idea to stay away from drinks loaded with sugar and caffeine. These kind of drinks add extra stress into your body, which is not really the way to go when you want to keep looking young.

Take phytoceramides

A little known shortcut for reversing the effects of aging on your face is to take a supplement called phytoceramides.

In recent studies it was shown that phytoceramides significantly reduced wrinkles
when taken once or twice a day for at least 1 month. This is definitely encouraging news for small business owners that want to keep looking young.

Get some exercise

No matter if you work at home or in an office, one of the main problems is getting enough exercise. Unfortunately, the vast majority of small business owners get no exercise at all, and this quickly leads to them feeling old with a host of different ailments such as a bad back and stiff neck.

This is why you should look to get at least 30 minutes of exercise per day. It doesn’t need to be complicated…a jog on the treadmill or a ride on your exercise bike first thing in the morning is more than enough.

Get plenty of sleep

It’s far too easy for small business owners to fall into the habit of burning the candle at both ends. While this might have been okay when you was 18 years old, once you start to get older then it becomes harder to sustain.

At the end of the day, you really do need to get enough sleep so you are well rested and your body has enough time to repair.

Eurozone Holding Back Global Economy

According to the Organisation for Economic Co-operation and Development (OECD), the slow economic growth in the Eurozone is holding back the global economy. The OECD downgraded the growth forecast for Germany, France and Italy after conflicts in the Middle East and Scotland’s Independence Referendum are increasing risks and uncertainty.

The OECD had revised its 2014 estimate to only a 0.8% increase in the Eurozone economy, contrary to its earlier forecast of 1.2% in May. The United Kingdom’s forecast is reduced to 3.1%

The United States’ economic expansion went down to 2.1% from 2.6 along with Japan, whose economy fell from 1.2% to 0.9%. For global growth, OECD has not yet announced any changes to its 3.4% forecast.

China’s slow progress rate hasn’t changed at 7.4%. According to the group, China has managed its slowdown by sustaining its current rates.

Meanwhile, India was the only economy likely to grow larger. Its forecast is now at 5.7% compared to 4.9% after the voting of a new government and its pursuit of growth-oriented reforms to combat inflation.

The Ukraine crisis had split Russia from the central European Union with heavy economic sanctions that also meant the slowdown of several EU nations who purchase their resources from Russia. Meanwhile, Russia had also launched its counter-EU sanctions.